The headlines from the Q3 2022 Rental Market Report from Hometrack are:
- Rental growth is close to peaking at 12.3% per annum. Average rents have risen by £115 per month over the last year to £1,051
- London’s rental growth, at 17.8%, is unsustainable and reflects a rebound in rents after a double-digit decline over the pandemic
- Rising rents are adding to cost-of-living pressures, pushing renters to look for smaller homes – demand for 2-bed flats has increased
- The shift to smaller homes is being re-enforced by rising energy costs, with the gas needed to heat a purpose-built flat 40% lower than that for a 3-bed house
- The chronic undersupply of rental homes shows no sign of changing, which means that rents will continue to post above average growth rates into 2023 despite cost-of-living headwinds
You can read the full report online for the Q3 2022 Hometrack Rental Market Report on the Hometrack website.